TORONTO: Sentry Select Capital Inc. (“Sentry” or the “Administrator”), the administrator of Oil Sands Split Trust (the “Trust”), announces the termination of the Trust effective September 15, 2010 (the “Termination Date”), in accordance with the terms of the Amended and Restated Trust Agreement dated April 30, 2007 (the “Trust Agreement”).
Prior to the Termination Date, the Administrator will convert the Trust’s investment portfolio to cash, to the extent practicable, and will satisfy, or make provision to satisfy, the liabilities of the Trust. The Administrator has determined, given the nature of the Trust’ current investment portfolio, that in order to complete the liquidation process in an orderly fashion, such process is anticipated to commence approximately three weeks prior to the Termination Date.
Redemption of Capital Units: For each Capital Unit redeemed on the Termination Date, holders of Capital Units of the Trust (“Unitholders”) will receive, at the Unitholder’s option, either:
(a) the amount, if any, by which the Value per Combined Security exceeds the principal amount of a Preferred Security plus any accrued and unpaid interest thereon on such date; or
(b) provided the Unitholder also tenders to the Trust at least 20 Business Days prior to the Termination Date, one Preferred Security, such Unitholder’s pro rata share of the Canadian Oil Sands Trust units (“COS Units”) plus (minus) the amount by which the value of the other assets of the Trust exceed (are less than) the liabilities (including any extraordinary liabilities but excluding any interest and outstanding principal amounts owed on the Preferred Securities) of the Trust as at the Termination Date, all as determined by the Trust.
A Unitholder must give written notice to CDS through a CDS Participant at least 20 Business Days prior to the Termination Date indicating how the Unitholder chooses to be paid for his or her redeemed Capital Units. Unitholders who do not give the required 20 Business Days’ notice will be deemed to have chosen to be paid in cash.
A ‘‘Combined Security’’ is considered to consist of one Preferred Security and one Capital Unit.
The term “Value Per Combined Security’’ means, unless the Administrator determines that it is not possible to sell the COS Units, the net amount received by the Trust per Combined Security on the disposition of that number of COS Units represented by the Combined Security’s pro rata share of the COS Units, less brokerage fees, commissions and all other transaction costs relating to such sale plus (minus) the pro rata share of the amount by which the value of the other assets of the Trust exceed (are less than) the liabilities (including any extraordinary liabilities and including, but not limited to, management fees and other amounts to be reimbursed to the Administrator and compensation payable to, and the expenses of Trustees, including, but not limited to, the cost of any insurance maintained for the protection of Trustees and the payment of any amount necessary to indemnify the Trustees but excluding any interest and outstanding principal amounts owing on the Preferred Securities) of the Trust as at the Termination Date, all as determined by the Trustees.
The Administrator will issue a press release if it determines that it is not practical to sell the COS Units.
Investors are encouraged to review the Trust Agreement and the Trust’s prospectus dated June 13, 2003, for further details. Capitalized terms used herein but not defined are as defined in the Trust Agreement.
Oil Sands Split Trust: Oil Sands Split Trust offers investors both Preferred Securities and Capital Units. The Trust holds COS Units in order to fund quarterly fixed-interest payments on the Trust's Preferred Securities and to enable the holders of the Trust's Capital Units to participate in any capital appreciation in the COS Units and benefit from any increase in the distributions paid on those units.
Sentry Investments: Sentry Investments is a Canadian asset management company that offers a diverse range of investment products including mutual funds, hedge funds, flow-through limited partnerships, closed-end trusts and other alternative investments, covering a variety of domestic and global mandates.
Documents (including press releases) regarding the various investment funds that are managed or advised by Sentry are provided for information purposes only and cannot be relied on to be complete, exhaustive or error-free unless the complete set of documents for any given investment fund with respect to which information is being sought is reviewed and then only on SEDAR (www.sedar.com).